Indian consumers are not really ‘using’ Internet on their Smartphones

Happy Valentine’s Day Tribe,
I am gonna make a real debatable comment today about Indian telecom company’s revenue story.
Within last week all the top 3 telcos declared their P&L results, and one thing is common among all three – Quarter revenue growth has come from mobile data. So does it sound death knell for traditional voice & SMS? Does this mean that Indian consumers are gulping down Internet in the small screen now? Is the new telecom revolution going to be in mobile Internet, with urban and rural consumers getting entertainment, news and the world wide web on the go?
Well, my opinion is that the P&L figures hide the real story. All the top 3 telcos need to execute lot more to garner sustainability of data revenues.  Definitely, voice is boring and SMS industry is being eaten up by Mark Zuckerberg & team. Only the British operator has generated some revenue growth in voice due to its heavier proportion of Postpay subs as compared to rest of the unlucky 13. It’s also true that mobile Internet has been the revenue driver and focus of top management of all ops. So am I confused or trying to confuse you?
Neither cos my intention is to give clarity to you. I made the statement that data revenues are most vulnerable. It’s simply because unlike the perception, Indian consumers are really not lapping up “data” on the go. In fact, they are extremely skeptical, doesn’t know how and what to use with their latest smartphones and are still voice heavy users. Controversial statement? Well, let me show how a typical data usage contribution pie of any leading telco looks like currently.
1. Bulk of Indian mobile users are just “snacking” data or are accidental users. They pay at an exorbitant rate of nearly Rs 5k-10k per Gb. Hence, customers are very skeptical about their billing on data. They are mostly not aware of the host of data packs in offer and what suits their need. Common question which i have heard from most Indian mobile users who have bought the latest gadget in town is ” What will be my data consumption? Is 1gb enough? Should i opt for a 2g or 3g offer? How csn i control my usage and biling? How much data usage will a video download take up? How much data will be used in 1 hour? Unless marketers give complete clarity and education on these basic questions, usage stickiness will be vulnerable.

2. Only a few percentage of customers are Data Savvy and actually busting the promo packs they are using. These are revenue negative subs for the company. However maximum effort and communication are targeted to these set of subscribers. These customers use data at a very minimal rate of Re 10 per Gb. Thus, this proves the huge disparity between the subscribers portfolio of mobile Internet users.

So in effect, max Indian mobile users can shift their internet usage to other modes of internet like broadband or dongles since that gives them control. Thereby, my theory that telcos data growth story is just at a very nascent stage and need to be nurtured carefully to avoid the bubble bust.  We all remember the 2k dotcom fiasco related to Internet boom.  Hence all marketers in telco and related industry professionals must join as a tribe to avoid another Internet bust this time in the small screen segment.

My personal top 5 suggestions to address this situation and thereby generate sustainable revenue are:

1. Look at Internet users in conjunction with the type of device they are using. It’s like the car you drive and the fuel you use. So buying the fanciest of gadget/smartphone is like buying a BMW. But to utilize the best out of BMW you can’t run it on CNG, similarly you need the correct data pack to fully utilize the potential of an iPhone or iPad or Samsung Note.
2. Micro-segmentation and Mass customisation is the key. Gone are days when a bouquet of packs are offered. Telcos and customers both need customized Ticket Packs. Example packs for social networking, for BBM, for email+Facebook, time of day, weekend packs, etc.
3. First Time Right – target customers at the point of purchase of latest gadget; enable his device settings; download the most popular app for free; set his email account – make the customer walk out working (WOW)
4. Telco + OEM tie ups in a strategic as well as tactical manner. Both need to work in tandem for the customer.
5. Last but not the least, build a data DNA both internally and externally. Make the consumer understand the value of ‘Internet on the go’ and the ‘world of opportunities ‘ it opens up for him. Try to answer these questions at every stage “Why data?”, “Why do you need 3G?”, “Why mobile Internet for corporate/organization?”

No doubt next wave of revolution in communication will be driven by the Tribe who will lead the mobile Internet tsunami. However, it’s a gold mine so like Macanas (Gregory Peck) devise the correct understanding of consumer need and right plans to execute. Don’t be drawn into a herd mentality. Lead the change 🙂

So what’s Tribe Joy?

Hello Netizens,

The world is changing. There are numerous technology, products and services discovered every day. However, from the time Adam & Eve had their first date, one constant ‘technology’ that’s still changing and impacting human life is ‘communication technology’. Think about it. From basic sign language to development of sound to drawing on primitive caves to written scripts, from writing in blackboard to writing books, from typing in typewriter to typing on word docs, from sentences to SMS, from email to chat – we are still developing new ways and forms to communicate. Hence my belief is that communication has been and will be the single most impact on human life and in a positive way.
My second belief is in the idea of a ‘tribe’ – which I attribute solely to marketing guru Seth Godin. The basic premise of a tribe is that everyone has an opportunity to make a difference in the world. That’s possible by bringing together a tribe of like minded people who are brave enough to lead a concept/movement/passion/hobby and do fresh and exciting work.

People, I am bringing these thoughts to you by combining the above two beliefs. I bring to you from my personal and professional experiences the opportunity to form a tribe to impact communication industry in India. So welcome to the Tribe of Joy (that’s as far as my creative juices flow in nomenclature, but best part is that it sounds positive).

So getting to the point, what will I Share and hence what will you find by joining the tribe?
1. Consumer Insights on Indian mobile subscribers
2. Trends and Opportunities in Indian mobile industry
3. Professional knowledge on Mobile Internet trends in India with focus on smartphones, tablets and Mobile Broadband
4 Professional and personal opinion on increasing business/revenue in Indian mobile sector

Dear Netizens, these pages are definitely my thoughts but it’s my request to make them impact full for Indian consumers by adding your opinion/criticism/comments. It’s my endeavor to use them for the betterment of Indian mobile industry since I am directly in a position to influence the same.

Everyone is welcome to be a member of the tribe – only one criterion, it should impact Indian consumers in a positive way. Just to reiterate, the mission of the tribe is to belief in the revolution of mobile in our lives and possess a passion to drive this revolution in a positive way.

For the joy of consumer join the tribe of Joy :))